{"id":196190,"date":"2023-09-13T10:00:00","date_gmt":"2023-09-13T14:00:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=196190"},"modified":"2023-09-13T13:12:48","modified_gmt":"2023-09-13T17:12:48","slug":"inflation-spikes-beyond-forecasts-to-3-7-in-august-forces-markets-to-rethink-fed-policy","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/inflation-spikes-beyond-forecasts-to-3-7-in-august-forces-markets-to-rethink-fed-policy\/","title":{"rendered":"Inflation Spikes Beyond Forecasts To 3.7% In August, Forces Markets To Rethink Fed Policy"},"content":{"rendered":"\n<p>Wednesday brought an alarming inflation surge that has left economists and financial markets in a state of surprise, as the Consumer Price Index (CPI) awakened vigorously last month from&nbsp;<a href=\"https:\/\/www.benzinga.com\/economics\/macro-economic-events\/23\/09\/34505468\/august-consumer-price-index-preview-will-0-6-monthly-inflation-rattle-markets\" target=\"_blank\" rel=\"noreferrer noopener\">a year-long hibernation.<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-inflation-surges-beyond-expectations-nbsp-in-august\"><strong>Inflation Surges Beyond Expectations<\/strong>&nbsp;In August<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The annual CPI inflation rate soared from 3.2% in July to a notable 3.7% in August 2023, surpassing economist expectations of a 3.6% increase.<\/li>\n\n\n\n<li>On a monthly basis, the CPI accelerated sharply, rising by 0.6% in August, a stark contrast to the 0.2% increase seen in July, but in line with expectations. This marked the sharpest monthly CPI increase since June 2022.<\/li>\n\n\n\n<li>When energy and food items are excluded from the basket, the core CPI showed a different picture. It decreased from July\u2019s 4.7% to 4.3% year-on-year in August, matching economists\u2019 predictions.<\/li>\n\n\n\n<li>The core CPI\u2019s monthly increase was 0.3%, advancing from July\u2019s 0.2% figure, and above than the expected 0.2%.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Market Reaction, Fed Speculation<\/strong><\/h2>\n\n\n\n<p>The August CPI data, released by the Bureau of Labor Statistics, has come in hotter than anticipated, fueling concerns about the Federal Reserve\u2019s future actions.<\/p>\n\n\n\n<p>Prior to the release of the CPI data, the market had been pricing in a 93% probability the Federal Reserve would refrain from raising interest rates during its Sept. 20 meeting. Additionally, there was a 58% chance that rates would remain unchanged in November.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally Posted September 13, 2023 &#8211; <a href=\"https:\/\/www.benzinga.com\/economics\/macro-economic-events\/23\/09\/34533564\/inflation-spikes-beyond-forecasts-to-3-7-in-august-forces-markets-to-rethink-fed-\">Inflation Spikes Beyond Forecasts To 3.7% In August, Forces Markets To Rethink Fed Policy<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wednesday brought an alarming inflation surge that has left economists and financial markets in a state of surprise, as the Consumer Price Index (CPI) awakened vigorously last month from a year-long hibernation.<\/p>\n","protected":false},"author":1128,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6,8,9,22,26,3],"tags":[77,4006,570,3598],"contributors-categories":[13584],"class_list":{"0":"post-196190","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-north-america","7":"category-region","8":"category-securities","9":"category-stocks","10":"category-text-articles","11":"category-traders-insight","12":"tag-fed","13":"tag-fed-policy","14":"tag-inflation","15":"tag-market-outlook","16":"contributors-categories-benzinga"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Inflation Spikes Beyond 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